Liang Yaohui, also know as Taizi Hui, was the Chairman of Crown Prince Hotel in Dongguang, Guangdong province. [Photo/Xinhua]

A famous businessman went on trial in Dongguan Intermediate People's Court on Wednesday for allegedly organizing prostitution rackets and destroying material evidence in the Pearl River delta city.

According to the indictment, Liang Yaohui, also known as Taizi Hui, or Prince Hui, and his 47 hotel employees, were investigated for arranging more than 100 prostitutes to conduct illegal sex trade in Crown Prince Hotel in the city's Huangjiang township since April 2004.

Liang, 48, was chairman of the hotel, one of the five-star properties in Dongguan, a city famous for its entertainment industry.

Liang reportedly set up 99 separate sauna rooms in the hotel where allegedly sexual acts took place.

Liang's hotel was closed down after the local government launched a campaign against prostitution after China Central Television exposed the illegal trade in the city in February 2014.

Liang was arrested on April 14 for running a prostitution racket and destroying material evidence, according to Dongguan city bureau of public security.

A verdict is awaited.

According to Chinese laws, organizing illegal sex trade can result in life in prison or even death if the crime is deemed serious enough, and the illegal gains can be confiscated.

Liang, one of the richest people in Dongguan, was once a famous entrepreneur in Dongguan, one of a major production bases in the mainland.

In addition to operating hotels, Liang's business involved crude oil.

He was once chosen as one of the top 10 charitable people in Dongguan. He has donated more than 56 million yuan ($9 million) to local charitable organizations.

Liang was selected as the deputy of national People's Congress in January of 2008. But he was disqualified after he was detained on April 14.